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Pescanova 'faked' annual turnover in 2011 and 2012 by 80%, says KPMG audit

Thursday, October 24th 2013 - 21:13 UTC
Full article 23 comments
'Patagonian squid number 3,'was sold to instrumental companies for EUR 28.45 while its real price was EUR 4.27 'Patagonian squid number 3,'was sold to instrumental companies for EUR 28.45 while its real price was EUR 4.27
Pescanova was operating with fourteen instrumental companies to blow up sales and turnover Pescanova was operating with fourteen instrumental companies to blow up sales and turnover

The auditing firm KPMG found out that the Galician multinational firm Pescanova ‘blew up’ up to 1,264% the price of seafood products sold to the 14 instrumental (straw) companies with which it operated through fake invoices.

In the forensic audit report, to which the agency EFE had access, it appears that the operations had the code RCM (Red 060 Commercial Major) and that they posed no real goods transaction.

The report clarifies that the prices at which the fictitious sales were recorded -- because there was no movement of goods -- were significantly higher than those conducted with real customers that had been assigned other codes.

KPMG analyzed the transactions from 2012, in which it is noted how Pescanova sold to these firms products such as '4/6 bonbon 5k hake fillets' at an average unit price of EUR 42.34 while to the actual customers the firm did so at EUR 3.10, giving a difference of 1,264.68%.

The same happened with the 'Patagonian squid number 3,' which was sold to the instrumental companies for EUR 28.45 while it did so to the actual ones for EUR 4.27, that is to say, a difference of 565.57%.

The cases of 'the Argenova prawn number 2' (sold to the instrumental ones at 438.67% dearer), the 'banana prawn tails' (384.05%) and the 'sausage hake' (406%) were also mentioned.

The audit reflects the case of two companies: Buena Pesca 97 and Pescatrade – which performed the two operations: the real ones, at prices that are identical to those for the actual customers, and the fictitious ones, at prices that are significantly higher.

The KPMG report reflects how Buena Pesca 97 buys 'skinless hake fillets F-3 Afri.CO' from Pescanova at EUR 3.84 per unit; and in another bill under code RCM (Central Major), it acquires the same product at EUR 70.

According to the auditing firm, the average unit prices of these products sold to the 14 instrumental companies with which Pescanova was operating were “significantly higher than the prices at which they were sold to other customers.”

According to the forensic report, between 77% and 80% of Pescanova’s turnover between 2011 and 2012, respectively, was fictitious.

The instrumental companies with which the multinational firm was operating were: Efialtes, El Gran Sol de Altura, Pescados Jorfras, Templeton Fish, Ventres Fish, Sieg Vigo, Pescaeje Sur, Pescagalicia Noroeste, Pontepesca, mar de Arenco, Caladeros del Norte, Intermega Pesca, World Frost and Seafrizen.

This Thursday it is expected that the National Court Judge Pablo Ruz take evidence as the accused parties from several people linked to these instrumental companies.

They include Camilo Rodríguez González (Pontepesca, Mar de Arenco and Alfa Vigo administrator), Javier Fernández Corujeira (Fergopa Galicia, Pescados Jorfras, Pescaeje, Pescagalicia Noroeste, El Gran Sol de Altura sole director and Efialtes former partner) and Francisco Javier Retamar Docal (Sieg-Vigo sole director and shareholder with 99% of the capital and Mar de Arenco former sole administrator). (FIS).-
 

Categories: Fisheries, International.

Top Comments

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  • Think

    Comment removed by the editor.

    Oct 24th, 2013 - 10:07 pm 0
  • golfcronie

    That libel Mr think. He retired from his company in 2009. Pescanova were allegedly falsifying their accounts 2011,2012

    Oct 24th, 2013 - 10:34 pm 0
  • Think

    Turnip at (2)

    Accountants already looking into Pescanova's last 10 years records....

    That means 2013, 2012, 2011,2010, 2009, 2008, 2007, 2006, 2005, 2004 and 2003, matey......

    2009 is just in the middle of it.....

    Oct 24th, 2013 - 10:42 pm 0
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